Netflix increase price3/12/2024 “Now a whole new era of challenges and opportunity begins.”Ī dollar here and a dollar there might not seem like much, but it matters to both Netflix and consumers.įor some consumers, price increases - even $1.50 - may be too much considering the influx of services in recent years from Disney+ to Peacock to HBO Max (which is owned by CNN parent’s company, WarnerMedia). “They’ve reinvented the entertainment industry in the last decade.” he added. Challenges lie ahead for Netflix on subscriber growth, production costs and evolving consumer habits, Hare said. “In the near term Netflix continues to be the premier streaming service both at home and abroad,” Hare said.īeyond that? TBD. Of course, Netflix is still Netflix and continues to be massively popular with its 213.5 million users around the world. “That’s why they need to talk about the global growth story, positive cash flow, new content, new growth opportunities like gaming, and potentially new business models and markets.” “Subscriber growth in the US and Canada has been a difficult story to tell,” Hare said. If Netflix continues to bring in so-so subscriber growth numbers, Hare believes that the company will need to focus on other ways to make its investors happy. That’s why investors will be so focused on what Netflix says about the current quarter and beyond, as those higher prices start to kick in. “We’re estimating that Netflix will spend $17 billion globally and that’s off $12 billion in 2020, which happened to be a down year because of Covid,” he said. Mark Zgutowicz, a senior analyst with Rosenblatt Securities, said that Netflix spends a ton of money on content around the world, which hasn’t been supported by two of its biggest markets, US and Canada, where subscriber growth has “waned over the past several quarters.” Wall Street was happy with the news, sending Netflix’s stock up roughly 2% on Friday. In Canada, Netflix’s standard plan also went up $1.50 to $16.49 Canadian and the premium plan rose $2 to $20.99 Canadian. The premium plan increased $2 per month, to $19.99. The streaming media company said Friday that it’s raising the monthly price for a US subscription to its standard plan by $1.50, to $15.49, and its basic plan by $1 to $9.99. “Raising prices is just one lever they can continue to pull right now, though I’m not sure for how much longer,” Hare said. Netflix teaming up with PGA Tour and golf's majors for 'immersive' docuseries with glittering cast of players The news comes after Netflix announced a $5 billion live-streaming deal with WWE, in which it exclusively air "Monday Night Raw" beginning in January 2025.Alex Goodlett/CJ Cup Summit/ Ben Jared/PGA TOUR/Getty Images The company said ad plans now account for 40% of all Netflix sign-ups in markets where they are offered. in the second quarter of 2024 and "taking it from there." Netflix said it plans to retire its Basic plan in more countries, starting with Canada and the U.K. It noted how ad memberships increased by nearly 70% in the final quarter of 2023 – thanks in part to the phasing out of its Basic plan for new and rejoining members. In its fourth quarter earnings report, the streaming giant said scaling up its ads business "represents an opportunity to tap into significant new revenue and profit pools" in the future. Netflix’s Basic plan, which it phased out last summer for new and returning users in the U.S., is currently only available to those who were already subscribed to that option. Netflix expects to phase out its basic, ad-free plan
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